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Microsoft and Zune – making portable entertainment for MS users

July 23, 2006

Gadget and tech-oriented blogs have been speculating about it but it is already true: Microsoft has confirmed that they will be preparing a portable music player and integrated service. They are going to launch Zune which is a family of hardware and software focused on digital entertainment. They will start with digital music. However they also plan to have a line for a portable video player and maybe even a portable game device. The report has not mentioned what other products will be as Microsoft has not given any details yet.

The report also included information about Zune — that similar to iTunes, users will be able to view playlists, et cetera. Currently it is said that there are no licensing deals in place just yet.

This is good news for all music and media enthusiasts because they will have other sources of music and even new gadgets for it. Microsoft is also thinking of a different scheme for licensing and even pricing. This is the dilemma that they face. They have to compete with Apple’s iTunes and so it might be that it will be quite interesting to see how they will be dealing with the industry issues.

It will be fascinating to find out what will happen to iTunes when this service has been launched. Will people move this new service? How will it affect the music industry? Sure, there will be competition but will it actually be favorable for the players in the recording industry. Knowing Microsoft, there will be a massive marketing campaign for Zune. And one has to wonder what kind of lifestyle they will be promoting through their ads. Microsoft is definitely going after the entertainment market as they probably think that the computer market is pretty much stable as far as their business is concerned.

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